New York banking organizations (general guidance)

In December 2022, the New York Department of Financial Services (NYDFS) established a prior approval requirement for virtual currency activities. This supervisory requirement mandates that entities regulated by NYDFS obtain prior written approval before engaging in new or materially different virtual currency-related business activities. The requirement is particularly relevant for banks and fintechs operating in New York that partner on crypto or digital asset offerings. It represents an expansion of NYDFS oversight beyond its existing BitLicense framework and signals increased regulatory control over the pace at which regulated institutions can launch crypto-related products. For BaaS banks serving crypto-adjacent fintechs in New York, this adds a significant regulatory gate to new product launches.

Verified from source: On December 15, 2022, NYDFS issued guidance (the '2022 Guidance') clarifying that all New York banking organizations are required to obtain prior agency approval for virtual currency-related activity, with highly prescriptive information requirements for submissions.